City of Austin Economic Development Presentation — original pdf

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Implementation of South Central Waterfront Plan Presentation by Key Partners: Sylnovia Holt-Rabb, Director: City of AustinEconomic Development Department Theresa Alvarez, President and CEO: Austin Economic Development Corporation South Central Waterfront Advisory Board August 15, 2022 1 Agenda Background Unique Initiative of Past City Projects Master Developer Role Comparative Examples City and AEDC Roles SCW Plan Governance & Oversight SCW Plan Infrastructure Costs Next Steps 2 BACKGROUND ` PURPOSE • To establish conceptual framework to allow site-specific building enhancements in exchange for on-site and citywide community benefits. • Lays out set of tools to guide area redevelopment for next 20 years HISTORY • 1960-70s: Creation of Lady Bird (Town) Lake & beautification efforts led by First Lady of Texas • 1980s: Town Lake Corridor Study & Waterfront Overlay Combining District • 2012-13: Sustainable Places Design Assessment • 2014-16: Stakeholder Meetings & Council Briefings • 2016: ‘Greening of SCW Report’ outlines vision • 2016: Council adopts SCW Vision Framework Plan as amendment to Imagine Austin • 2020: Modified Physical Framework updated costs 3 South Central Waterfront Vision Plan 2016 & 2020 Vision Framework Plan (Adopted 2016, Updated 2020)* SCW District includes 118 acres with 34 privately-owned parcel & 1 City parcel. *Project Connect’s major mobility improvements in area were not yet determined. • Build New Infrastructure ($252M): expand street grid, add miles of sidewalks and approximately 17 acres of parks, plazas, and trails • Promote Density: add 6.4+ million square feet of new residential, office, retail, and hotels by 2040 • Make 20% of housing affordable: add 575 units by 2040 • Increase Values: est. $6.7 billion in taxable value by 2040 Multiple Sources for Financial Toolkit • Private Funding: Development Bonus Fees, Public Improvement District, Philanthropy (Conservancy) • Public Funding Sources: Tax Increment Financing, Capital Improvement (bonds), Parking, Affordable Housing Subsidies, Other • Estimated Gap estimated $400-600M (based on 2020 assumptions) • Off-site Benefits: infrastructure & affordable housing: ~$100 M • On-site Benefits: infrastructure, affordable housing & feasibility: $300 - $500M Credit: Project Connect 4 SCW Essential Components & Variables Essential Components • 305 South Congress (Statesman) PUD sets entitlements for prominent parcels • SCW Regulating Plan sets vision by subdistricts, allowing owners to evaluate options • Tax Increment Reinvestment Zone 19 offers dedicated revenue stream for District activities • Downtown Public Improvement District funds Downtown Austin Alliance Variables • Project Connect will impact portions of waterfront subdistricts. • Regulatory tools are set for district & subdistrict goals; no legal path for parcel-by-parcel planning. • Private owners’ participation is voluntary with multiple options, making TIRZ revenue uncertain. • Infrastructure & operations plans depend heavily on market participation and coordination. • Lack of City-owned land in SCW district; City only owns One Texas Center tract in district. 5 SCW Unique Initiative of Past City “Projects” 6 Comparative Examples: Master Developer Role ` o Examples: Mueller, 2nd Street District, Seaholm District, o Developer acquires land from City and contracts to build or Colony Park builds directly: • Infrastructure (City pays its share of costs) – Roads, Utilities, Detention Ponds, Parks / Amenities • Vertical development (residential / commercial) 7 Roles & Responsibilities City and Austin Economic Development Corporation SCW Vision Component Regulating Plan Streets, infrastructure & utilities Affordable Housing City of Austin HPD leads, until adopted, then all Departments provide support, as needed Austin Economic Development Corporation AEDC advises HPD on market feasibility during drafting, then leads implementation. EDD facilitates AEDC coordination with relevant departments on needed improvements AEDC coordinates with relevant City departments on needed improvements HPD prepares regulatory and financial tools required to achieve 20% affordability goal, including tapping GO Bonds, Housing Trust Fund, Public Finance Corporation and existing programs Advise on market feasibility. Market program to encourage participation. Other Community Benefits EDD coordinates with relevant departments on regulatory and financial tools needed to achieve other community benefits Advise on market feasibility. Market program to encourage participation. Financial Tools FSD leads efforts with relevant departments to identify financial tools and funding, such as CIP, General Fund, GO Bonds, TIRZ19, PID(s) Advise on market feasibility of financials tools. Market program to encourage participation. One Texas Center redevelopment SFGT with support from HPD and BSD lead; redevelopment to include affordable housing and municipal office buildings Advise as needed. 8 City of Austin Role SCW Plan Implementation The City Manager tapped Economic Development Department (EDD) to lead the City’s effort to implement the SCW Vision Plan October 1, 2021, transferring project from Housing and Planning Department. EDD initiated a two-step approach to develop and coordinate essential components of Plan’s success. Administrative Actions • • • • Administrator for AEDC ILA Dedicated staff position with management support SCW Advisory Board Oversight Interdepartmental Working Group including AEDC Coordination with Key Departments and AEDC • Regulating Plan – Housing & Planning Department lead • Financial Tools, including TIRZ19 – Financial Services lead • One Texas Center Redevelopment – Financial Services lead • Implementation – AEDC per the Interlocal Agreement + EDD 9 City of Austin Role SCW Plan Implementation ` City responsible for obtaining Council- approved financing and land use policies • Financial Services (Financial): Tax Increment Reinvestment Zone Public Improvement District Bonds • Housing & Planning (Regulatory): Regulatory/ Land Use Plan Affordable housing incentives Utility departments outline capital improvements needed (CIP) • Austin Transportation • Public Works • Austin Water • Watershed protection • Telecom and Regulatory Affairs 10 AEDC as “Master Developer” Per the Interlocal Development Agreement (ILA) Provides critical market intelligence and private sector perspective to inform City policy Provides private sector intelligence to creation and deployment of capital improvement plan Markets and engages private sector in partnering on implementing the Vision Negotiates incentives / resources to structure partnerships with private developers Administer tax increment reinvestment zone Take lease or ownership positions on specific real estate transactions Raise private sector funding 11 AEDC Operationalizes and Executes 12 SCW Plan Governance & Oversight City of Austin City Council AEDC Board (Authority from City Council) South Central Waterfront Advisory Board (Advises City Council per Ordinance 20170216-034) Tax Increment Reinvestment Zone Board (Same members as City Council) Potential AEDC contract to administer TIRZ (Enabled and annually appropriated by City Council 13 SCW Plan: Infrastructure Costs • Latest estimates released in 2021, using 2020 figures. Public Benefit Description Cost Estimates* ($ in millions) • Do not include AEDC administrative expenses, affordable housing, or operations and maintenance of amenities. • Using 2022 market factors reflecting 30% cost increases from 2020, the $277 million estimate rises to $330M. Open Spaces Roadway & Drainage Utilities Parks, trails, plazas (+/-17 acres) New (0.6 miles) & refurbished (0.8 miles) streets, including Barton Springs extension Water, wastewater, electric, gas, and telecommunications network Streetscapes Sidewalks, street trees Green Infrastructure Water quality rain gardens within right of way Reclaimed water -- TOTAL *Modified Framework 2020 estimates adjusted for projected cost escalation on 11/2/2021. $93.7 $83.4 $56.3 $35.7 $5.5 $2.4 $277.0 1414 Next Steps ` South Central Waterfront District Regulating Plan • September – November 2022: Staff will work on the regulating plan and present it to boards and commissions for consideration Tax Increment Reinvestment Zone (TIRZ) 19 • December 2022 – January 2023: Staff will update the TIRZ to reflect the approved regulating plan as well as changes to market conditions. South Central Waterfront Plan • Post-January 2023: With an approved regulating plan and TIRZ plan, a revised SCW Vision “Funding Gap” will be known. Staff and consultants will seek ways to reduce the gap, including but not limited to reducing the project scope of the SCW Vision. 15 Questions and Discussion 16